Research & Experimentation

Rewarding Innovation in Research & Experimentation

Do you continually improve your business? Did you make something better? Faster? Cheaper? The federal government rewards your efforts through the Research & Experimentation (R&E) tax credit. If research and innovation are part of your culture, you may be eligible for the roughly $9 billion in credits that are distributed annually.

A wage-based credit, it covers a portion of wages for employees who directly contribute to R&E, supplies and software used in R&E activity and contracted R&E services. Companies are using it for process improvements that they might have shrugged off as simply being part of the job. That could mean developing a lighter or more flexible tool, designing a unique electrical system for a new building, testing new materials, applying for a patent or streamlining an internal process.

A business can claim the credit for all open tax years, which generally means the current year and the past three years. The business can also carry the credit forward up to 20 years, which makes it valuable even to companies currently operating at a net loss.

Research & Experimentation Experience: Our tax professionals have helped numerous clients claim a share of the R&E credits that are distributed annually. We remain attentive to legislative changes impacting the tax code, so you can continue to claim eligible credits and plan for future credits.

Contact us to find out how you can benefit from claiming the credit, a dollar-for-dollar reduction of tax.